How to Lodge Your Tax Return in Australia as an Indian — Complete Guide (2026)

Tax time in Australia runs from 1 July to 31 October each year. For Indian Australians — especially those with overseas income, Indian property, or NRI financial accounts — the tax return is more complex than for most Australian residents.

This guide walks you through exactly how to lodge your 2025–26 tax return, what you can claim, and how to correctly report any income from India.

Key Dates — 2025–26 Tax Year

Date	What happens
1 July 2026	myTax opens — you can start lodging
14 July 2026	Employers finalise income statements
Late July 2026	Income data pre-filled in myTax — best time to lodge
31 October 2026	Deadline for self-lodgers (Saturday, so effectively 2 November 2026)
15 May 2027	Deadline if you use a registered tax agent

If you miss the 31 October deadline without a registered tax agent, the ATO applies a Failure to Lodge (FTL) penalty of $330 per 28-day period overdue, up to $1,650 maximum, plus interest on any unpaid tax.

Do you have Indian income to declare? Indian accountants across Australia who specialise in NRI tax, DTAA and overseas income reporting → Find Indian Accountants

Who Needs to Lodge a Tax Return?

You must lodge an Australian tax return if you:

• Earned any income in Australia during the 2025–26 financial year (1 July 2025 – 30 June 2026)
• Are an Australian tax resident
• Had tax withheld from your wages by an employer
• Earned business or investment income
• Had assessable government payments

You may not need to lodge if your only income was below the tax-free threshold ($18,200) and no tax was withheld — but you should still lodge to confirm this formally with the ATO through a non-lodgment advice.

Am I an Australian Tax Resident?

For most Indians living and working in Australia, the answer is yes. You are generally an Australian tax resident if:

• You live in Australia permanently
• You have been in Australia for more than 183 days in the tax year
• You intend to remain in Australia (even on a temporary visa)

Why this matters: Australian tax residents must declare their worldwide income — not just income earned in Australia. This includes:

• Salary from Indian employers
• Rental income from Indian property
• Interest from NRE and NRO accounts
• Indian shares and mutual fund dividends
• Any other overseas income

Many Indian migrants are unaware of this requirement. The ATO actively data-matches with overseas tax authorities and is increasingly vigilant about unreported foreign income.

Three Ways to Lodge Your Tax Return

Method 1: myTax via myGov (Free — Recommended)

myTax is the ATO's free online lodgement tool. It pre-fills much of your information automatically.

Step 1: Sign in to my.gov.au and link to the ATO (one-time setup).

Step 2: Go to ATO → Tax → Lodge Tax Return → 2025-26.

Step 3: Wait until late July when your income statement is marked "Tax ready." Lodging before this means your employer's data may not be finalised.

Step 4: Review pre-filled information — income statements, bank interest, private health insurance data, dividend information. The ATO pre-fills this from your employer, bank, and health fund automatically.

Step 5: Add any income that is NOT pre-filled — foreign income, rental income, business income, capital gains.

Step 6: Add your deductions — work expenses, investment costs, charitable donations.

Step 7: Review your return and submit. Most refunds are processed within 12 business days.

Method 2: Registered Tax Agent

Using a registered tax agent extends your deadline from 31 October 2026 to 15 May 2027. This gives you extra time and professional accuracy.

This is strongly recommended if you have:

• Indian income (rental, NRE/NRO interest, salary, dividends)
• Indian property you sold during the year
• Superannuation contributions to claim
• A business or contracting income
• Multiple jobs or complex deductions

Fee: $150–$400 AUD for a straightforward return. Worth every dollar if you have overseas income.

Method 3: Paper Return

Avoided by most people. Takes longer and is prone to errors. Only use if you have no internet access.

What Income to Declare

Australian Income (Pre-filled by ATO)

• Salary and wages from Australian employer
• Interest from Australian bank accounts
• Dividends from ASX shares
• Rental income from Australian investment property
• Government payments (JobSeeker, Family Tax Benefit)
• Superannuation lump sums (if applicable)

Foreign Income (You Must Add Manually)

This is the critical section for Indian Australians that many get wrong.

NRE Account Interest Interest on NRE (Non-Resident External) accounts is tax-free in India. However, as an Australian tax resident, you must declare this income in Australia. It may be exempt or partially exempt under the India-Australia DTAA (Double Tax Avoidance Agreement), but this requires careful calculation.

NRO Account Interest Interest on NRO accounts is taxed in India at 30% + surcharge. You declare this in Australia too, but you can claim a Foreign Income Tax Offset (FITO) for the Indian tax already paid, avoiding double taxation.

Indian Rental Property Income If you own property in India that is rented out, this rental income must be declared in Australia. You can deduct Indian expenses incurred earning this income.

Indian Salary or Freelance Income If you worked in India for part of the year before moving to Australia, or if you provide services to Indian clients, this income may need to be declared depending on your residency status during the year.

Mutual Funds and Shares in India Dividends and capital gains from Indian mutual funds and shares are generally assessable in Australia. The interaction with Indian capital gains tax and the DTAA is complex — seek professional advice.

The DTAA protects you from being taxed twice. The India-Australia Double Tax Avoidance Agreement lets you claim credits in Australia for tax already paid in India. An Indian accountant will know exactly how to apply this → Find an Indian Accountant

What You Can Claim as Deductions

Work-Related Expenses

Working from home: If you worked from home in 2025–26, you can claim using one of two methods:

• Fixed rate method: 67 cents per hour for each hour worked from home (covers electricity, internet, office supplies, phone)
• Actual cost method: Calculate actual cost of electricity, internet, phone proportionate to work use

Other work expenses:

• Professional tools and equipment (laptop, external monitor, headset — if bought for work)
• Work-related education and training (courses, textbooks, professional development)
• Union and professional association fees
• Work-related travel (not home to work — only travel between work sites)
• Uniforms and protective clothing (not regular clothes, even if worn to work)

Investment Deductions

• Interest on loans used to buy investment property or shares
• Rental property expenses (rates, insurance, repairs, agent fees, depreciation)
• Investment-related accounting fees
• Investment-related subscriptions and publications

Other Deductions

• Charitable donations to registered Australian charities (deductible gift recipients)
• Cost of managing tax affairs (last year's tax agent fee, tax publications)
• Income protection insurance premiums (if purchased outside superannuation)

What You CANNOT Claim

• Regular clothes even if worn to work
• Grooming and haircuts
• Meals at work (unless overnight travel)
• Traffic fines
• Private or domestic expenses
• Children's school fees

The 2026 Tax Rates for Residents

From 1 July 2024, Australia introduced Stage 3 tax cuts. The current rates for 2025–26 are:

Taxable Income	Tax Rate
$0 – $18,200	0%
$18,201 – $45,000	16%
$45,001 – $120,000	30%
$120,001 – $180,000	37%
Over $180,000	45%

Plus 2% Medicare Levy on income above the threshold (for eligible residents).

Superannuation and Your Tax Return

Super Contributions

If you made personal (after-tax) contributions to superannuation and want to claim a tax deduction, you must lodge a Notice of Intent with your super fund before lodging your tax return.

Low-Income Super Tax Offset (LISTO)

If you earn under $37,000, the government contributes up to $500 into your super automatically — no action needed.

Division 293 Tax

If you earn over $250,000, an additional 15% tax applies to super contributions. This is assessed through your tax return.

Linking Your Australian Return with Indian Taxes

This is the most complex part for Indian Australians:

Step 1: Declare all Indian income in your Australian return under "Foreign income."

Step 2: Calculate the Australian tax on that income.

Step 3: Claim a Foreign Income Tax Offset (FITO) for any Indian tax already paid on the same income.

Step 4: The FITO reduces your Australian tax liability, preventing double taxation.

Step 5: If you need to also file an Indian ITR (Income Tax Return), use your Australian tax return (Notice of Assessment) to file Form 67 with the Indian Income Tax portal to claim foreign tax credit in India for Australian tax paid.

Form 67 must be filed before the Indian ITR due date (31 July 2026 for most non-audit Indian taxpayers).

Note: Australian tax returns use AUD. Convert all Indian income at the RBA's average exchange rate for the financial year.

Common Mistakes Indian Australians Make

Not declaring NRE account interest. Many Indians believe NRE interest is tax-free everywhere. It is tax-free in India — but as an Australian tax resident, it may be assessable in Australia.

Lodging before income statement is "Tax ready." Wait until your income statement is finalised (marked "Tax ready" in myGov, usually by mid-late July). Lodging early with incomplete pre-fill data causes amendments later.

Overclaiming work expenses. The ATO's data-matching system flags unusually high deduction claims. Only claim what you can substantiate with receipts, logs or bank records.

Missing the October deadline. If you are not using a registered tax agent, you must lodge by 31 October. Missing this attracts $330 penalties per 28 days.

Not claiming all deductions. Many Indian migrants under-claim. Working-from-home expenses, professional subscriptions, and last year's tax agent fee are commonly missed.

When to Use a Registered Indian Accountant

Consider using a registered tax agent (Indian accountant) if you:

• Have income from India (NRE/NRO interest, Indian property, Indian salary)
• Sold property or investments in India this year
• Run a business or work as a contractor
• Have a complex work history (multiple jobs, partial-year residency)
• Want more time — agents extend your deadline to May 2027
• Are unsure about DTAA provisions

Fee: $150–$400 for most individual returns. Often saves far more in legitimate deductions found.

Find a registered Indian tax agent near you: Indian accountants in Sydney, Melbourne, Brisbane and Perth who specialise in NRI tax returns and overseas income → Browse Indian Accountants

Frequently Asked Questions

When can I lodge my 2025–26 tax return?

<cite index="62-1">myTax opens from 1 July 2026</cite>, but wait until late July when your income statement is marked "Tax ready" in myGov.

What if I am owed a refund — do I still need to lodge?

Yes. The ATO will not automatically issue your refund — you must lodge to receive it.

Can I lodge my Australian tax return from India?

Yes. myTax is accessible internationally from any device via myGov. Alternatively, a registered Australian tax agent can lodge on your behalf.

What is a Notice of Assessment?

After lodging, the ATO issues a Notice of Assessment (NOA) confirming your taxable income, tax payable or refund, and Medicare Levy. Keep this document — you may need it for visa applications, rental references, and Indian ITR filings.

Do I need to lodge if I only worked for part of the year?

Yes, if you earned any assessable income in Australia during 2025–26 you should lodge, even for part of the year.